A sole proprietorship is a business structure with a single owner.

 

Key Highlights

• One owner.

• Unlimited personal liability.

• No separation between the owner and the business.

• All income, losses, assets, and liabilities belong to the owner.

 

Formation

• No filing requirements, just need to start operating the business.

• May need federal ID for operations like paying sales tax and filing payroll reports.

 

Operations

• Owner makes all the rules and runs the business as they wish.

 

Termination

• Either the owner dies, or;

• The owner chooses not to continue with the business.

• May terminate whenever the owner chooses.